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PGMP · Question #208
PGMP Question #208: Real Exam Question with Answer & Explanation
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Strategic Alignment
Question
Tom is program manager for his organization. His program is scheduled to last ten months and has a cost estimate for the program of $550,000. It is now month nine and Tom reports that he actually has a cost variance of a positive $56,000. While Tom is pleased, the new management is not. Why is a positive cost variance not necessarily good news?
Options
- AA poor cost estimate prevented the organization from adding things to the program scope.
- BTom has overestimated the cost of the program.
- CA poor cost estimate could affect the organization's decisions to invest the funds elsewhere .
- DTom has forgot to include deliverables in the program.
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Topics
#Cost Variance#Program Financial Management#Strategic Resource Allocation#Opportunity Cost